Montana LLC

mowermech wrote:

kbaum wrote:
Executive,

The IRS could mostly care less where you state of residency is. State departments of revenue and some local departments of revenue are the ones to be concerned with. Doing the things you mentioned in your post will certainly add credibility to your residency choice.

True. Also, the Federal Internal Revenue Service (IRS) doesn't really care if you pay your state taxes or not, nor do they care if you sign up for a Limited Liability Company (LLC) in Montana or any other state. The only thing they care about is whether or not your FEDERAL taxes are properly filed and paid.

This is true... While there is no universally adopted definition of domicile, the states (and the IRS) share a general understanding of what domicile means. To be clear, Domicile is what we are referring to here. Domicile is defined as:

Domicile

Whether you have community property and community income depends on the state where you are domiciled. If you and your spouse (or your registered domestic partner) have different domiciles, check the laws of each to see whether you have community property or community income.

You have only one domicile even if you have more than one home. Your domicile is a permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. The question of your domicile is mainly a matter of your intention as indicated by your actions. You must be able to show that you intend a given place or state to be your permanent home. If you move into or out of a community property state during the year, you may or may not have community income.

Factors considered in determining domicile include:

Where you pay state income tax,
Where you vote,
Location of property you own,
Your citizenship,
Length of residence, and
Business and social ties to the community.

Amount of time spent. The amount of time spent in one place does not always explain the difference between home and domicile. A temporary home or residence may continue for months or years while a domicile may be established the first moment you occupy the property. Your intent is the determining factor in proving where you have your domicile.
(IRS Tax Code Pub.555)

For further reading, below is a legal brief relative to domicile planning.

Residency Brief

Simply put, if the OP follows the above, establishing his INTENT to make Montana, or any other State, his State-of-Domicile, then the establishment of an LLC is an unnecessary expense and would serve no useful purpose as outlined by the OP....

Just my opinion, of course, a competent attorney (rare :B)should be contacted to ensure your financial tax planning is right for you.....Dennis